Energy sector marks 100 days of UEDCL operations with significant gains and lower costs
The Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu, hailed the transition, emphasizing the government's commitment to a more reliable, affordable, and citizen-focused energy future.
One hundred days ago today, Uganda’s electricity distribution landscape underwent a historic transformation as the Uganda Electricity Distribution Company Limited (UEDCL) officially took over the grid assets from Umeme Limited. This milestone marks a major stride in the country’s second-generation power sector reforms, delivering tangible benefits to Ugandans, including reduced electricity costs and improved service delivery.
The Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu, hailed the transition, emphasizing the government’s commitment to a more reliable, affordable, and citizen-focused energy future. The government disbursed $118 million as a buyout to Umeme, with discussions on a contested portion of the assets continuing under due process.
“The ‘Big Switch’ from Umeme to UEDCL was not just about management change; it is a profound reaffirmation of our commitment to reliable, affordable, and citizen-focused energy delivery,” Minister Ssentamu told a press conference at Uganda Media Center, highlighting the shift’s broader strategic importance.
Paul Mwesigwa, the Managing Director of UEDCL, provided further details on operational successes, affirming the company’s strong start. “UEDCL has been able to maintain stability of the vending and billing systems, enabling all customers to seamlessly continue paying their bills online and through banks with maximum convenience,” Mwesigwa stated.
He confirmed that UEDCL has cleared 100% of Uganda Electricity Transmission Company Ltd (UETCL)’s bills for March and April 2025, totaling Shs220.5 billion, and arrangements are underway to timely clear the May bill of Shs164 billion.
Financial Stability and Future Investments:
To support ongoing operations and crucial capital investments, UEDCL is finalizing a $50 million loan from Absa Uganda, with loan agreements currently under review by the Solicitor General and the Ministry of Finance. UEDCL has also secured PPDA’s accreditation, streamlining its procurement processes. Over the next five years, UEDCL anticipates requiring more than $350 million for capital investments to further modernize and expand the network.
Challenges Ahead:
Despite the positive momentum, challenges persist. Vandalism of electricity infrastructure remains a significant concern, with suspects already charged with terrorism due to the economic sabotage caused.
Mwesigwa also noted that while network reliability has improved to 98.1% (up from 97.1% in March 2025), the system still registers a high number of faults caused by vandalism, aging infrastructure, and overloaded transformers.
He also highlighted that approximately 47,000 rotten pole structures, identified at takeover, are yet to be reinstated, and 11 substations currently operate with a reserve margin of less than 20%, requiring urgent intervention.
UEDCL continues to maintain a fully operational 24/7 call center to ensure customers have a constant feedback mechanism. The company is actively working to address the identified challenges and build on the initial successes of this transformative period for Uganda’s energy sector.
Key Achievements in the First 100 Days:
Cost Reduction: Electricity costs have seen a steady decline, culminating in a recent 14% reduction that is projected to save Ugandans approximately UGX 250 billion. Crucially, the long-standing goal of achieving 5 US cents per kilowatt-hour for extra-large industries has been successfully met, boosting industrial competitiveness.
Seamless Transition: Despite initial concerns, the energy purchase process continued smoothly from April 1, 2025, ensuring no disruption in supply for Ugandans.
Robust Staffing: UEDCL has rapidly built its workforce, recruiting 96% of its required staff—a total of 2,601 employees onboarded from Umeme Ltd and UEDCL’s existing base. The remaining 4% of specialized positions are currently being competitively advertised to qualified Ugandans. All staff across 100 offices have undergone induction to align with UEDCL’s culture, aiming for maximum productivity.
Infrastructure Upgrades: Significant network improvements have been initiated. The Kakiri substation’s capacity was boosted from 10MVA to 20MVA, and Kabaale’s from 2.5MVA to 5MVA, leading to greatly improved supply in regions like Kigezi. UEDCL has also addressed legacy issues, replacing all 116 faulty transformers identified at the takeover in April 2025. The national distribution demand stood at 1,014 MW in May 2025, fully supported by a committed generation capacity of 1,099 MW.
Enhanced Connections: To accelerate electricity access, UEDCL has hired 580 new connections officers, deploying 550 of them across the country. An additional 400 technicians are expected to be recruited by the close of July 2025. These efforts are part of the Electricity Access Scale-Up Project, targeting over 410,000 new connections by the end of 2025.
